You bought a car and you’re well on your way to paying it off based on your agreed upon rate and terms. You keep hearing about refinancing, but it sounds complicated and like it would require a lot of paperwork, right? Would it really make a difference? The truth is refinancing is pretty quick and easy, and the best part? It can save you a lot of money.
Based on your financial situation, there are many reasons to consider refinancing. Do any of these apply to you?
You financed from a dealer. If you originally financed your car through a dealership’s “preferred lender”, they probably added a few points for their own commission. This means you likely didn’t get the best rate possible.
Your credit has improved. One of the biggest factors in your loan interest rate and fees is your credit score. A difference of just 30 points can make a big impact on your rate. If your credit score has improved, there’s a good chance your payments will be lower if you refinance.
Interest rates have dropped. Interest rates are controlled by the government, and they will ebb and flow based on the economy. If rates have decreased since you purchased your car and you have a fixed rate loan, you could significantly lower your monthly payment by refinancing at a lower interest rate.
Your financial situation has changed. Have you paid off some debt or gotten a better job which would allow you to pay more per month? When you refinance, you have the option to pay off your loan faster with less accumulated interest.
You want to consolidate your debt. Do you have several loans or credit cards with high-interest rates that you’d like to lump into one? Refinancing can consolidate your debt one affordable monthly payment at a lower interest rate. Pay off your debt faster, with less interest!
There’s no waiting period to refinance, so even if you just bought a car a few months ago and your financial situation has changed, you should consider refinancing. You can also refinance boats, RVs, motorcycles, and ATVs! Right now, Eastex Credit Union offers auto loans as low as 2.95% and you’ll make no payments for the first 90 days! What are you waiting for?
Wondering if refinancing is right for you? Use this refinance calculator to estimate your new payments!
Apply or get Pre-Approved Today!
VISIT: Apply in person at any Eastex CU branch location.